17

SONESTA INTERNATIONAL HOTELS CORPORATION - RATIO ANALYSIS

Type of ratio Formula Calculation
LIQUIDITY year numerator denominator Outcome
Current ratio current assets/ current liabilities 2008 47.3 / 15.9 2.97
2007 46.3 / 17.8 2.60
2006 35.6 / 11.1 3.21
2005 41.9 / 18.5 2.26
2004 21.1 / 17.6 1.20

Acid test ratio quick assets/ current liabilities 2008 43.9 / 15.9 2.76
2007 41.4 / 17.8 2.33
2006 33.5 / 11.1 3.02
2005 38.2 / 18.5 2.06
2004 16.6 / 17.6 0.94

Operating cash flow

to current liability operating cash flows/ average
ratio current liabilities 2008 8 / 16.85 0.47
2007 7.5 / 14.45 0.52
2006 3.4 / 14.80 0.23
2005 -3.7 / 18.05 -0.20
2004 7.1 / 16.75 0.42

Accounts receivable revenue/ average accounts

turnover receivable 2008 80.5 / 7.6 10.59
2007 86.7 / 8.7 9.97
2006 98.8 / 10.95 9.02
2005 88.1 / 10.95 8.05
2004 89.9 / 8.45 10.64
Average collection
period 365/ accounts receivable turnover 2008 365 / 10.59 34.47
2007 365 / 9.97 36.61
2006 365 / 9.02 40.47
2005 365 / 8.05 45.34
2004 365 / 10.64 34.30

Working capital (1) current assets - current liabilities 2008 47.3 - 15.9 31.40
2007 46.3 - 17.8 28.50
2006 35.6 - 11.1 24.50
2005 41.9 - 18.5 23.40
2004 21.1 - 17.6 3.50

(long term liabilities + owners'

Working capital (2) equity) - fixed assets 2008 79.3 - 35 44.30
2007 78.8 - 37.3 41.50
2006 81.3 - 38.40 42.90
2005 78.1 - 72.80 5.30
2004 22.1 - 76.60 -54.50

Working capital
turnover ratio revenue/ average working capital 2008 80.5 / 29.95 2.69
working capital = current assets -
current liabilities 2007 86.7 / 26.5 3.27
2006 98.8 / 23.95 4.13
2005 88.1 / 13.45 6.55
2004 89.9 / 1.95 46.10
SOLVENCY
Solvency ratio total assets/ total liabilities 2008 127 / 122.9 1.03
2007 129.6 / 121 1.07
2006 126.4 / 119.1 1.06
2005 130.6 / 118.8 1.10
2004 109.5 / 98.3 1.11

Debt-Equity ratio total liabilities/ total owners' equity 2008 122.9 / 4.1 29.98
2007 121 / 8.6 14.07
2006 119.1 / 7.4 16.09
2005 118.8 / 11.9 9.98
2004 98.3 / 11.3 8.70

Long term debt to

total capitalisation long term debt/ (long term debt +
ratio owners' equity) 2008 31.8 / 35.9 88.58%
2007 33.6 / 41.6 80.77%
2006 34.1 / 41.5 82.17%
2005 34.1 / 46 74.13%
2004 69.8 / 81.1 86.07%

Number of times
interest earned earning before interest and taxes/
ratio interest expense 2008 6.7 / -2.9 -2.31
2007 2.2 / -3.0 -0.73
Operating cash
flows to total Operating cash flows/ average total
liabilities ratio liabilities 2008 8 / 121.95 6.56%
2007 7.5 / 120.05 6.25%
2006 3.4 / 118.95 2.86%
2005 -3.7 / 108.55 -3.41%
2004 7.1 / 96.30 7.37%
ACTIVITY

Property and total revenue/ average property

equipment turnover and equipment 2008 80.5 / 36.15 2.23
2007 86.7 / 37.85 2.29
2006 98.8 / 55.60 1.78
2005 88.1 / 74.70 1.18
2004 89.9 / 78.75 1.14

Asset turnover total revenue/ average total assets 2008 80.5 / 128.3 0.63
2007 86.7 / 128 0.68
2006 98.8 / 128.50 0.77
2005 88.1 / 120.05 0.73
2004 89.9 / 109.80 0.82

PROFITABILITY
Profit margin net income/ total revenues 2008 4.10 / 80.50 5.09%
2007 1.30 / 86.70 1.50%
2006 -3.50 / 98.80 -3.54%
2005 4.70 / 88.10 5.33%
2004 -4.60 / 89.90 -5.12%

income after undistributed

Operating efficiency operating expenses*/ total
ratio revenues 2008 35.2 / 80.5 43.73%
2007 58.5 / 86.7 67.47%

Return on assets net income/ average total assets 2008 4.1 / 128.3 3.20%
2007 1.3 / 128 1.02%
2006 -3.5 / 128.50 -2.72%
2005 4.7 / 120.05 3.92%
2004 -4.6 / 109.80 -4.19%
Gross return on earning before interest and taxes/
assets average total assets 2008 6.7 / 128.3 5.22%
2007 2.2 / 128 1.72%
2006 -3.8 / 128.50 -2.96%
2005 -1.9 / 120.05 -1.58%
2004 1.5 / 109.80 1.37%

Return on owners'
equity net income/ average owners' equity 2008 4.1 / 6.35 64.57%
2007 1.3 / 8 16.25%
2006 -3.5 / 9.65 -36.27%
2005 4.7 / 11.60 40.52%
2004 -4.6 / 13.60 -33.82%

Interest payment interest expenses/ total liabilities 2008 $ -2,970 / 122.9 -24.17
2007 $ -3,012 / 121 -24.89

Net income/ amount of outstanding

Earnings per share shares 2008 4.1 / 3.7 1.11
2007 1.3 / 3.7 0.35
2006 -3.5 / 3.7 -0.95
2005 4.7 / 3.7 1.27
2004 -4.6 / 3.7 -1.24
OPERATING
Mix of sales type of revenue/ total revenues 2008 2007 2008 2007 outcome
2008 2007
Rooms $ 41,052 $ 39,121 / 80517 86685.00 50.99% 45.13%
F&B $ 17,519 $ 17,113 / 80517 86685.00 21.76% 19.74%
Management, license and services
fees $ 7,956 $ 6,635 / 80517 86685.00 9.88% 7.65%
Parking, telephone and other $ 5,025 $ 5,069 / 80517 86685.00 6.24% 5.85%
Other revenues from management
and affiliated properties $ 8,965 $ 18,747 / 80517 86685.00 11.13% 21.63%

REVPAR rooms sales/ rooms available 2008 $63,573,000 / 900.0 70636.67

2007 $61,265,000 / 900.0 68072.22
2006 $54,302,000 / 1200.0 45251.67

Gross Profit Cost of sales/ Total revenue 2008 48.7 / 80.5 0.60
2007 48.6 / 86.7 0.56
2006 59.0 / 98.8 0.60
2005 41.0 / 88.1 0.47
2004 40.9 / 89.9 0.45

Gross Operating
Profit percentage
(overall) GOP/ total revenue 2008 6.7 / 80.5 0.08
2007 2.2 / 86.7 0.03
2006 -3.8 / 98.8 -0.04
2005 -1.9 / 88.1 -0.02
2004 1.5 / 89.9 0.02

Marketing expense total marketing expenses/ total

percentage revenue 2008 $5,608.00 / $80,517 6.96%
2007 $5,427.00 / $86,685 6.26%